Synopsis As Introduced Creates the School District Debt Control and Taxpayer Protection Act and amends the School Code. Provides that a school district may not refinance debt past the repayment period of the debt when issued, may not issue debt to be serviced over a period of greater than 20 years, and may not issue capital appreciation bonds. Provides that school districts may not be indebted in an amount greater than that indicated in the Act and if a school district does exceed the debt limitation, then the school district may not incur any new debt until the school district's debt is lower than the debt limitation. Effective immediately.
House Committee Amendment No. 2 Replaces everything after the enacting clause. Reinserts the contents of the bill with the following changes. Provides that, notwithstanding any other provision of the Act, a school district may only exceed its debt limitation upon the Governor declaring a disaster within the school district, in part or in whole, under the Illinois Emergency Management Agency Act or upon the Governor's prior approval for any other reason. Requires the referendum question allowing a school district to issue bonds to include the total cost of the bond, including interest, principal, and issuance costs, as well as the proposed term of the bond. Provides that any material or literature from a school district that is used to present information to the public about the issuance of bonds shall provide a projected cost per median-priced home in the district. Requires this information to include the school district's current long-term debt amount. Effective immediately.
Replaces everything after the enacting clause. Reinserts the contents of the bill as amended by House Amendment No. 2, with the following changes. Provides that for the purpose of calculating the debt limit of a school district in relation to its equalized assessed value, debt shall include all debt issued and its associated interest and issuance costs (instead of the debt including alternate revenue bonds, privately placed debt, and all interest on all debt). Provides that no school district may become indebted in any manner or for any purpose in an amount in the aggregate exceeding 13.8% for a unit district or 6.9% for an elementary or high school district of the value of the taxable property therein (rather than just 13.8% of the value of the taxable property therein) or, if greater, the sum that is produced by multiplying the school district's 2016 equalized assessed value by the debt limitation percentage in effect on the effective date of the Act (instead of on January 1, 2017), previous to the incurring of such indebtedness. Removes the provisions allowing a school district to exceed its debt limitation upon the Governor declaring a disaster or upon the Governor's prior approval for any other reason. Changes the provisions concerning bond referendum information and bond issuance information. Removes the provisions amending the School Code. Effective immediately.